FOCUS Flashcards
Definition of Retailing
Retailing can be seen as any business who focusses their marketing efforts on the final consumer, with the intention of selling goods or services to them.
Understanding 5 Customer Demands
provide examples
- Who is the customer?
- Where do customers buy?
- When do customers buy?
- What do customers buy?
- How do customers buy?
3 Important factors to consider when choosing the right place
Location
Store Layout
Store Planning
The seven Rights of Retailing
the right product the right quantity the right quality the right place the right time the right price the right service
Consumer
Consumers can be identified as people who:
identify a need or desire
make a purchase
then dispose of the product during the consumption process
This explains why consumers with their particular needs, buying power and behaviour are the chief components of the market environment.
The importance of historic sales patterns
Historic sales patterns look at the best and the worst sellers from a previous season and are depicted in a report format to show “lessons learned”.
A dull repeat of old formulas isn’t needed.
A fashion business must not repeat historic buying failures, although a successful history is no guarantee of future success in the fickle world of fashion.
Bottom-up planning
Bottom-up planning is the analysis that begins with what was sold: how much, what kind, when and at what price. Projections are then made for the coming sales period and investment in merchandise is based on previous sales. Bottom-up planning is a daily task of every merchandise manager.
The importance of historic sales patterns
Historic sales patterns look at the best and the worst sellers from a previous season and are depicted in a report format to show “lessons learned”.
A dull repeat of old formulas isn’t needed.
A fashion business must not repeat historic buying failures, although a successful history is no guarantee of future success in the fickle world of fashion.
Bottom-up planning
Bottom-up planning is the analysis that begins with what was sold: how much, what kind, when and at what price. Projections are then made for the coming sales period and investment in merchandise is based on previous sales. Bottom-up planning is a daily task of every merchandise manager.
Define Stock turn and stock intake planning
Stock turn is simply a way of measuring how many times a business changes the stock that it has on offer to the customer during the course of a trading year (Jackson, 2001:100).
To measure annual stock turn there is a simple formula that can be applied by the merchandiser:
Stock turn = Stock turn = Annual sales value/ Average monthly stock value
Why is stock turn important for the retailer?
In the fashion industry it is very important for a retailer to “turn” their stock as many times as possible throughout the season or year. Without regular change and update of stock, a fashion retailer becomes stale and boring.
Planning Non staple stock
Pre set order and quantities and automatic re orders are not possible with non staple goods.
Retailers should consider price, size, colour, and style to help them select the non staple items that will satisfy customer demands
Planning by Price
It is necessary to offer a few different prices for the merchandise in each category. This is because the purchasing power and quality demands of customers vary. In addition most clients like to compare similar items before deciding what to buy.
Planning by Size
Knowing what size to oder is important to retailers buying merchandise such as home furniture or clothing, tools or tiles. Retailers need to buy to meet the demands of customers.
Planning by Color
Colour has become an important factor. In some cases such as in women shoes the colour can become more important that the material of which the merchandise goods are mede of.
Planning by Style
Trade magazine, suppliers representatives and competitors can provide useful information as to what styles to carry. However nothing can replace having a good knowledge of your consumers tastes.
Grid Layout
Arranges displays in rectangular fashion so that the aisles are parallel.
Traffic Control is regulated through the store. The gridiron layout is the arrangement of aisles and fixtures in a repeating, rectangular pattern.
It’s advantageous to small stores because of the simplicity. The regular sized aisles require little floor space. A lot of merchandise can be displayed in a limited amount of space. The use of the standard fixtures will save on costs.
Building costs will remain at a minimum because this arrangements adapt to structural variations. Customers can find merchandise easily. Unfortunately this layout tends to be uninteresting and limits the customers freedom of movement through the store.
Free Flow Layout
This is a very informal layout. Displays consist of various shapes and sizes. The fixture shapes and aisle patterns tend to be of an irregular arrangement. This is a flexible arrangement. A store can easily look larger or smaller by arranging the fixtures, without affecting the general layout. Amount of stock on display can be varied to match different sales variations without removing movable display stands. This can contribute in creating a unique look.
Boutique Layout
This layout divides the store into a series of individual shopping areas, each with its own theme.
P-O-P displays
P-O-P displays are important because they also have to be worked into the floor plan per seasonal event. P-O-P displays stimulate impulse buying to increase sales of items. Think of till points and waiting areas.
